HP Is Planning To Split Into Two Separate Businesses, Sources Say

mrspoonsi writes Hewlett-Packard is planning to split itself into two separate businesses, The Wall Street Journal is reporting. Sources tell the WSJ that HP will split its personal-computer and printer segments from its corporate hardware and services business. The announcement could come as early as Monday, the sources said. The company reorganized itself in 2012 under CEO Meg Whitman. That move combined its computer and printer businesses. The PC and computer segment is massive for HP. For the first six months this year, it reported $27.8 billion in revenue. That's about three times the size of HP's next biggest unit, the Enterprise Group, which makes servers, storage, and network hardware. Under the new split, Whitman would be chairman of the computer and printer business, and CEO of a separate Enterprise Group, according to one of the sources. Patricia Russo, who sits on HP's board, would be chairman of the enterprise company. The printer and PC operation would be led by Dion Weisler, a current exec in that division.

Comments

PERFECT!

[darkain]

The part that makes shitty consumer hardware is splitting up from the part that makes rock solid server hardware. This is an absolute dream come true!

Name ideas:

[Anonymous Coward]

The Server Hardware company could be called Digital.

And the consumer company could be called Compaq.

If there were to have a third company for printers - that should be called HP!

(I'm still bitter about Alpha being killed!)

HoPeless

[ebusinessmedia1]

From Carly Fiorina, on, hp has been lacking in leadership, and vision. Hewlett and Packard built a great company, only to have it destroyed by poseurs. Meg Whitman is the latest one - using smoke and mirrors to drive bumps in the stock price. We all know how this is going to end - eventual parting out to companies like Lenovo, Samsung - you name it. Whitman and other insiders will walk away with millions. hp's last 10 years is perfect representation of executive and Board incompetence.

Re:HoPeless

[Dutch Gun]

This is pretty typical of modern corporate America, unfortunately. Wall Street often rewards layoffs with a stock price bump, because it's an easy way to cut costs and boost short-term profits, as well as a way for a company to rid itself of any potential deadwood (in theory) that's dragging it's performance down. It's pretty likely this is also a move that will generate a short term boost as well, which means high-fives all around the boardroom.

Well, it would be foolish to get sentimental over the withering of a corporation, except for the fact that the low folks on the totem pole are the ones who get laid off first. Business tends to be Darwinian in nature, and if HP can't get it's shit together, then it simply leaves room for a competitor that will, and hopeful those new competitors are hiring. It's aggravating that CEOs continue to profit while they suck the life from a business, but I suppose it's quite literally none of my business how they want to run and ruin theirs.

Some advice to the CEOs...

[Pollux]

If you can't figure out how to make one company successful, why double your workload?

boat anchor

[slashmydots]

So they're dropping their company's boat anchor (the lowest quality PCs, laptops, and printers in existence) and expecting it to float? Good luck with that.

Re:boat anchor

[MikeKD]

No, but it will help with their parachutes.

Re:HP

[SeaFox]

Question is - which one does 'HP' have more faith in?

Just watch and see which side they transfer all their debt to. It's a classic play called "leave your shareholders holding the bag for your mismanagement of the original company".

Re:HP

[Frosty Piss]

In short, the current HP is already the result of a split, and the "new" HP will be whatever bit keeps the name, but will it have any meaning beyond a badge?

Like Pillips and Kodak and many other "greats", HP is now only a marketing company for cheap Chinese crap designed by someone else.

Re:HP

[hambone142]

I hope they take the founder's names off of the computer company. The last four CEOs have been an insult to Hewlett and Packard, its employees and its customers. Hewlett-Packard (now called "HP" out of shame) used to be the epitome of creativity, innovation, treating employees with respect and an "Extra Measure of Quality". Now it's nothing but a continuing estate sale of what once was a great company. The Board of Directors is to blame. The manifestation of its incompetence have been a succession of terrible CEOs (Fiorina, Hurd, Apotheker and now Whitman) who individually and collectively are incapable of understanding what is required to innovate products. The inkwell is also going dry (HP's primary source of profit was selling ink and it financed the remainder of the company). So what's left? HP Lab's funds have been cut for decades. Ink is drying up. Their PCs are designed and build by the cheapest Chinese bidder and the enterprise hardware business R&D capability has mostly walked out away out of frustration. Such a sad decay of a very, very good technology company.

Re:Women have wrecked HP.

[captjc]

No, Bean counters and MBAs have wrecked HP. Pointy Haired Bosses know no gender.